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Q Tools - Stevenson Operations Management 11th Ed PDF
Q Tools - Stevenson Operations Management 11th Ed PDF
Q Tools - Stevenson Operations Management 11th Ed PDF
PROCESS IMPROVEMENT
Process improvement A sys- Process improvement is a systematic approach to improving a process. It involves documenta-
tematic approach to improving a tion, measurement, and analysis for the purpose of improving the functioning of a process. Typ-
process. ical goals of process improvement include increasing customer satisfaction, achieving higher
quality, reducing waste, reducing cost, increasing productivity, and reducing processing time.
Table 9.8 provides an overview of process improvement, and Figure 9.3 shows its cyclical
nature.
TABLE 9.8
A. Map the process
Overview of process
improvement 1. Collect information about the process; identify each step in the process. For each step,
determine:
The inputs and outputs.
The people involved.
The decisions that are made.
Document such measures as time, cost, space used, waste, employee morale and any
employee turnover, accidents and/or safety hazards, working conditions, revenues and/or
profits, quality, and customer satisfaction, as appropriate.
2. Prepare a flowchart that accurately depicts the process; note that too little detail will not
allow for meaningful analysis, and too much detail will overwhelm analysts and be counter-
productive. Make sure that key activities and decisions are represented.
B. Analyze the process
1. Ask these questions about the process:
Is the flow logical?
Are any steps or activities missing?
Are there any duplications?
2. Ask these questions about each step:
Is the step necessary? Could it be eliminated?
Does the step add value?
Does any waste occur at this step?
Could the time be shortened?
Could the cost to perform the step be reduced?
Could two (or more) steps be combined?
C. Redesign the process
Using the results of the analysis, redesign the process. Document the improvements; potential
measures include reductions in time, cost, space, waste, employee turnover, accidents, safety
hazards, and increases/improvements in employee morale, working conditions, revenues/profits,
quality, and customer satisfaction.
Evaluate
Seek ways to
Implement the
improve it
improved process
Design an
improved process
QUALITY TOOLS
There are a number of tools that an organization can use for problem solving and process
improvement. This section describes eight of these tools. The tools aid in data collection and
interpretation, and provide the basis for decision making.
The first seven tools are often referred to as the seven basic quality tools. Figure 9.4
provides a quick overview of the seven tools.
Flowcharts. A flowchart is a visual representation of a process. As a problem-solving tool, Flowchart A diagram of the
a flowchart can help investigators in identifying possible points in a process where problems steps in a process.
occur. Figure 9.5 illustrates a flowchart for catalog telephone orders in which potential failure
points are highlighted.
The diamond shapes in the flowchart represent decision points in the process, and the rect-
angular shapes represent procedures. The arrows show the direction of “flow” of the steps in
the process.
To construct a simple flowchart, begin by listing the steps in a process. Then classify each
step as either a procedure or a decision (or check) point. Try to not make the flowchart too
detailed or it may be overwhelming, but be careful not to omit any key steps.
Check Sheets. A check sheet is a simple tool frequently used for problem identifica- Check sheet A tool for record-
tion. Check sheets provide a format that enables users to record and organize data in a way ing and organizing data to
that facilitates collection and analysis. This format might be one of simple checkmarks. identify a problem.
Check sheets are designed on the basis of what the users are attempting to learn by collect-
ing data.
Many different formats can be used for a check sheet and there are many different types of
sheets. One frequently used form of check sheet deals with type of defect, another with loca-
tion of defects. These are illustrated in Figures 9.6 and 9.7 (on page 401).
Figure 9.6 shows tallies that denote the type of defect and the time of day each
occurred. Problems with missing labels tend to occur early in the day and smeared print
tends to occur late in the day, whereas off-center labels are found throughout the day.
Identifying types of defects and when they occur can help in pinpointing causes of the
defects.
Figure 9.7 makes it easy to see where defects on the product—in this case, a glove—are
occurring. Defects seem to be occurring on the tips of the thumb and first finger, in the finger
valleys (especially between the thumb and first finger), and in the center of the gloves. Again,
this may help determine why the defects occur and lead to a solution.
Histograms. A histogram can be useful in getting a sense of the distribution of observed Histogram A chart of an
values. Among other things, one can see if the distribution is symmetrical, what the range of empirical frequency distribution.
Check sheet
Day
Defect 1 2 3 4 A tool for organizing and collecting
A data; a tally of problems or other events
B by category
C
Histogram
Frequency
A chart that shows an empirical
frequency distribution
A B C D E
Pareto chart
C B D A E
Scatter diagram
Materials Equipment
A diagram used to organize a search for
the cause(s) of a problem; also known as
Problem a fishbone diagram
People Methods
Customer
places call
Yes
No
Lost sale
Specify desired
item(s)
Yes
Alternate No Possible
Available?
selection? lost sale
Yes
No
Confirm order
Lost sale
Indicate method
of payment
End
FIGURE 9.7
A special-purpose check sheet
= Location of a defect
FIGURE 9.8
A histogram Frequency
values is, and if there are any unusual values. Figure 9.8 illustrates a histogram. Note the two
peaks. This suggests the possibility of two distributions with different centers. Possible causes
might be two workers or two suppliers with different quality.
Pareto analysis Technique Pareto Analysis. Pareto analysis is a technique for focusing attention on the most impor-
for classifying problem areas tant problem areas. The Pareto concept, named after the 19th-century Italian economist Vil-
according to degree of impor- fredo Pareto, is that a relatively few factors generally account for a large percentage of the
tance, and focusing on the most total cases (e.g., complaints, defects, problems). The idea is to classify the cases according to
important. degree of importance and focus on resolving the most important, leaving the less important.
Often referred to as the 80–20 rule, the Pareto concept states that approximately 80 percent of
the problems come from 20 percent of the items. For instance, 80 percent of machine break-
downs come from 20 percent of the machines, and 80 percent of the product defects come
from 20 percent of the causes of defects.
Often, it is useful to prepare a chart that shows the number of occurrences by category,
arranged in order of frequency. Figure 9.9 illustrates such a chart corresponding to the check
sheet shown in Figure 9.6. The dominance of the problem with off-center labels becomes
apparent. Presumably, the manager and employees would focus on trying to resolve this prob-
lem. Once they accomplished that, they could address the remaining defects in similar fash-
ion; “smeared print” would be the next major category to be resolved, and so on. Additional
check sheets would be used to collect data to verify that the defects in these categories have
been eliminated or greatly reduced. Hence, in later Pareto diagrams, categories such as “off-
Scatter diagram A graph that center” may still appear but would be much less prominent.
shows the degree and direction
of relationship between two Scatter Diagrams. A scatter diagram can be useful in deciding if there is a correlation
variables. between the values of two variables. A correlation may point to a cause of a problem. Figure 9.10
FIGURE 9.9 A Pareto diagram based on data in Figure 9.6 FIGURE 9.10 A scatter diagram
100%
97%
91%
15
44% Humidity
Number of defects
10
shows an example of a scatter diagram. In this particular diagram, there is a positive (upward-
sloping) relationship between the humidity and the number of errors per hour. High values of
humidity correspond to high numbers of errors, and vice versa. On the other hand, a negative
(downward-sloping) relationship would mean that when values of one variable are low, values
of the other variable are high, and vice versa.
The higher the correlation between the two variables, the less scatter in the points;
the points will tend to line up. Conversely, if there were little or no relationship between
two variables, the points would be completely scattered. In Figure 9.10, the correlation
between humidity and errors seems strong, because the points appear to scatter along an
imaginary line.
Control Charts. A control chart can be used to monitor a process to see if the process out- Control chart A statistical
put is random. It can help detect the presence of correctable causes of variation. Figure 9.11 chart of time-ordered values of a
illustrates a control chart. Control charts also can indicate when a problem occurred and give sample statistic.
insight into what caused the problem. Control charts are described in detail in Chapter 10.
FIGURE 9.12 One format of a cause-and-effect diagram FIGURE 9.13 Cause-and-effect diagram for airline ticket errors
Methods Materials Method Material
cause (printing) (ticket stock)
cause cause
cause cause Quality Age Density
Personnel Machine
Print quality
Source: Figure from Gitlow et al., Quality Management, p. 313. Copyright © 1995
Richard D. Irwin. Reprinted by permission of McGraw-Hill Companies, Inc.
causes than others, depending on the nature of the errors. If the cause is still not obvious at this
point, additional investigation into the root cause may be necessary, involving a more in-depth
analysis. Often, more detailed information can be obtained by asking who, what, where, when,
why, and how questions about factors that appear to be the most likely sources of problems.
Games Ritual
Outdoor Focus point
(continued)
42%
8 During the 1996 and 1997 seasons, Andrew was a point guard
7 and had fewer opportunities to shoot free throws, but he made
6
nine of them for an average of 75 percent.
5
4 Overall Benefits In addition to the tangible results, Andrew’s
3 confidence improved, and he learned how to determine when
2
changes to his shooting technique resulted in improvement. W.
1
Edwards Deming referred to this type of knowledge as profound.
1 3 5 7 9 11 13 15 17 19 21 23 25 Source: Timothy Clark and Andrew Clark, “Continuous Improvement on
Practice session the Free-Throw Line,” ASQ Journal, Copyright © 1997 American Society
for Quality. Reprinted with permission from Quality Progress magazine.
Run Charts. A run chart can be used to track the values of a variable over time. This can Run chart Tool for tracking
aid in identifying trends or other patterns that may be occurring. Figure 9.14 provides an results over a period of time.
example of a run chart showing a decreasing trend in accident frequency over time. Important
advantages of run charts are ease of construction and ease of interpretation.
FIGURE 9.14 2
A run chart shows performance
over time
Average number of
accidents per week 1
Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.
Type of Error
Location C B D A E
1 A
2
B
3 C
D E
4
4 3 1 2
100%
LCL
LCL Additional improvements
Process centered made to the process
Brainstorming. Brainstorming is a technique in which a group of people share thoughts Brainstorming Technique for
and ideas on problems in a relaxed atmosphere that encourages unrestrained collective think- generating a free flow of ideas in
ing. The goal is to generate a free flow of ideas on identifying problems, and finding causes, a group of people.
solutions, and ways to implement solutions. In successful brainstorming, criticism is absent,
no single member is allowed to dominate sessions, and all ideas are welcomed. Structured
brainstorming is an approach to assure that everyone participates.
Quality Circles. One way companies have tapped employees for ideas concerning qual-
ity improvement is through quality circles. The circles comprise a number of workers who Quality circles Groups of
get together periodically to discuss ways of improving products and processes. Not only are workers who meet to discuss
quality circles a valuable source of worker input, they also can motivate workers, if handled ways of improving products or
properly, by demonstrating management interest in worker ideas. Quality circles are usually processes.
less structured and more informal than teams involved in continuous improvement, but in
some organizations quality circles have evolved into continuous improvement teams. Per-
haps a major distinction between quality circles and teams is the amount of authority given
to the teams. Typically, quality circles have had very little authority to implement any but
minor changes; continuous improvement teams are sometimes given a great deal of author-
ity. Consequently, continuous improvement teams have the added motivation generated by
empowerment.
TABLE 9.9
1. What organizations do it the best?
The benchmarking approach
2. How do they do it?
3. How do we do it now?
4. How can we change to match or exceed the best?
Benchmarking Process of Benchmarking. Benchmarking is an approach that can inject new energy into improvement
measuring performance against efforts. Summarized in Table 9.9, benchmarking is the process of measuring an organization’s
the best in the same or another performance on a key customer requirement against the best in the industry, or against the best
industry. in any industry. Its purpose is to establish a standard against which performance is judged,
and to identify a model for learning how to improve. A benchmark demonstrates the degree to
which customers of other organizations are satisfied. Once a benchmark has been identified,
the goal is to meet or exceed that standard through improvements in appropriate processes.
The benchmarking process usually involves these steps:
1. Identify a critical process that needs improvement (e.g., order entry, distribution, service
after sale).
2. Identify an organization that excels in the process, preferably the best.
3. Contact the benchmark organization, visit it, and study the benchmark activity.
4. Analyze the data.
5. Improve the critical process at your own organization.
Selecting an industry leader provides insight into what competitors are doing; but competi-
tors may be reluctant to share this information. Several organizations are responding to this
difficulty by conducting benchmarking studies and providing that information to other orga-
nizations without revealing the sources of the data.
Selecting organizations that are world leaders in different industries is another alterna-
tive. For example, the Xerox Corporation uses many benchmarks: For employee involvement,
Procter & Gamble; for quality process, Florida Power and Light and Toyota; for high-volume
production, Kodak and Canon; for billing collection, American Express; for research and
development, AT&T and Hewlett-Packard; for distribution, L.L. Bean and Hershey Foods;
and for daily sched uling, Cummins Engine.
OPERATIONS STRATEGY
All customers are concerned with the quality of goods or services they receive. For this reason
alone, business organizations have a vital, strategic interest in achieving and maintaining high
quality standards. Moreover, there is a positive link between quality and productivity, giving
an additional incentive for achieving high quality and being able to present that image to cur-
rent and potential customers.
The best business organizations view quality as a never-ending journey. That is, they strive
for continual improvement with the attitude that no matter how good quality is, it can always
be improved, and there are benefits for doing so.
In order for total quality management to be successful, it is essential that a majority of
those in an organization buy in to the idea. Otherwise, there is a risk that a significant portion
of the benefits of the approach will not be realized. Therefore, it is important to give this suf-
ficient attention, and to confirm that concordance exists before plunging ahead. A key aspect
of this is a top-down approach: Top management needs to be visibly involved and needs to
be supportive, both financially and emotionally. Also important is education of managers and
workers in the concepts, tools, and procedures of quality. Again, if education is incomplete,
there is the risk that TQM will not produce the desired benefits.
And here’s a note of caution: Although customer retention rates can have a dramatic impact
on profitability, customer satisfaction does not always guarantee customer loyalty. Conse-
quently, organizations may need to develop a retention strategy to deal with this possibility.
It is not enough for an organization to incorporate quality into its operations; the entire sup-
ply chain has to be involved. Problems such as defects in purchased parts, long lead times, and
late or missed deliveries of goods or services all negatively impact an organization’s ability to
satisfy its customers. So it is essential to incorporate quality throughout the supply chain.
This chapter presents philosophies and tools that can be used to achieve high quality and continually SUMMARY
improve quality. Quality is the culmination of efforts of the entire organization and its supply chain.
It begins with careful assessment of what the customers want, then translating this information into
technical specifications to which goods or services must conform. The specifications guide product and
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